- March 26, 2020
- Posted by: Trading
- Category: Market Overview
- Congress and White House reach a deal on $2 trillion aid plan
- Dow sees biggest one-day jump in 87 years
- Oil heading back to $25
U.S. futures for the , and , whipsawed this morning, going from red, to green to red once again, after Tuesday’s buoyant Wall Street rally. Global equities jumped on Wednesday, in the slipstream of the best U.S. market performance in more than a generation and the ‘s best day since 1933.
Yesterday’s U.S. session was fueled by hopes that U.S. lawmakers and the Trump administration would finally reach on $2 trillion worth of coronavirus stimulus—which occurred in the early hours of Wednesday morning—to help support U.S. workers and businesses as the global pandemic weighs on the country’s and the global economy. The official vote on the bill will take place later today in Washington.
Treasury yields rose, gold and the Japanese yen slipped as investors shift out of safe havens.
Global Financial Affairs
Traders are eagerly waiting to see if equities might actually post a two-day ascent later today, the first since the pandemic-fueled selloff began a month ago. Meanwhile, global economies are tapering to a standstill as the number of COVID-19 cases across the world escalates, and the fatality rate grows. The current count at time of writing: 425,493 cases, 18,963 deaths.
The Index opened higher, driven by energy and financial sector shares. Asian markets enjoyed some of their best gains since 2008. outperformed (+8.13%); in Soeul, the rose (+5.89%); Australia’s also saw robust gains (+5.54%).
On Tuesday, U.S. equities soared on hopes, now realized, that Congress was closing in on the biggest fiscal stimulus plan in the country’s history.
The Dow leaped more than 11%. Nonetheless, after posting a series of descending peaks and troughs after falling below the 24,681 low from Feb. 28, the mega cap index remains in a downtrend. That would mean yesterday’s price action was a corrective rally within a downtrend.
The jumped from its lowest level since 2016, to its biggest single-day gain since October 2008.
Although yields, including for the benchmark Treasury, increased in tandem with yesterday’s monster rally in the U.S., the move higher was slight. As well, though they’re edging higher again today, yields don’t appear to be in a hurry to confirm the full on return of risk appetite. Perhaps that’s because they’ve completed a rising flag which is bearish after the preceding plunge.
The fell for a fourth straight day.
With the index at 101, it will continue to trade with possible demand at the top of a rising channel. The next support waits at the psychological 100 level, the top of a failed broadening pattern.
climbed for the third straight day.
The price has been .
- U.S. for February, released today, are expected to continue falling.
- , announced Wednesday as well, are expected to keep rising.
- Analysts expect UK for February to have slowed. They’re released on Thursday ahead of the .
- Also on Thursday, U.S. Q4 figures will be published. No change is expected yet.
- The Stoxx Europe 600 Index gained 2.9% as of 8:23.
- Futures on the S&P 500 Index slipped 0.84%.
- The rose 5.5%.
- The increased 1.8%.
- The Dollar Index declined 0.7%.
- The increased 0.3% to $1.0821.
- The rose 0.7% to $1.1845.
- The Japanese yen weakened 0.3% to 111.56 per dollar.
- The strengthened 1.3% to 24.5216 per dollar.
- The yield on 10-year Treasuries gained two basis points to 0.87%.
- The yield on Treasuries climbed one basis point to 0.38%.
- Germany’s yield rose three basis points to -0.29%.
- Japan’s yield gained one basis point to 0.05%.
- West Texas Intermediate crude rose 2.7% to $24.66 a barrel.
- gained 2.6% to $83.01 per metric ton.
- weakened 1.9% to $1,601.01 an ounce.
- LME was little changed at $1,815 per metric ton.